Tuscaloosa City Council borrows $10M for storm recovery

Published: Wednesday, February 6, 2013 at 3:30 a.m.

Last Modified: Tuesday, February 5, 2013 at 11:30 p.m.

TUSCALOOSA | A $10 million line of credit to help fund storm recovery efforts was unanimously approved by the City Council on Tuesday.

This marks the first dollars the City Council has moved to borrow for the millions of dollars in costs associated with rebuilding and cleaning up Tuscaloosa after the April 27, 2011, tornado.

While there are no immediate plans to begin drawing money from the credit line, it could be used to cover the city’s share for tornado debris removal or to fulfill City Hall’s agreement with the Alabama Department of Transportation in improving the intersection of McFarland Boulevard and 15th Street/Veterans Memorial Parkway.

Cost estimates for the city’s combined share of debris removal and the McFarland Boulevard and 15th Street improvements fall between $3 and $5 million.

Part of the agreement with Regions Bank stipulates that no interest will begin until the city actually uses the money.

Interest payments will be due quarterly starting in April should a portion of the line of credit be used immediately, but none of the principal will be owed until August 2014.

<p>TUSCALOOSA | A $10 million line of credit to help fund storm recovery efforts was unanimously approved by the City Council on Tuesday.</p><p>This marks the first dollars the City Council has moved to borrow for the millions of dollars in costs associated with rebuilding and cleaning up Tuscaloosa after the April 27, 2011, tornado.</p><p>While there are no immediate plans to begin drawing money from the credit line, it could be used to cover the city's share for tornado debris removal or to fulfill City Hall's agreement with the Alabama Department of Transportation in improving the intersection of McFarland Boulevard and 15th Street/Veterans Memorial Parkway.</p><p>Cost estimates for the city's combined share of debris removal and the McFarland Boulevard and 15th Street improvements fall between $3 and $5 million.</p><p>Part of the agreement with Regions Bank stipulates that no interest will begin until the city actually uses the money.</p><p>Interest payments will be due quarterly starting in April should a portion of the line of credit be used immediately, but none of the principal will be owed until August 2014.</p>